It is just possible that this is about to change with the arrival of a newgovernment in London after 18 years of laissez-faire economics.

Since the Labour Party took power at the beginning of May, British civilservants have spent hours in EU negotiating rooms wondering about theenvironmental position of their new masters.

But what is already clear is that a Labour government will be much readierto countenance the use of ‘green’ taxation.

The Institute of Public Policy Research, a think-tank closely linked withthe new government, has gone so far as to advocate a commercial andindustrial energy tax, higher road fuel duties, increased waste disposaland quarrying levies offset by lower social security charges, value addedtax and business rates.

This may never happen, but if even some of it does, it could provoke arevolution in European green tax policy.

In areas stretching from the introduction of an energy tax and ‘polluterpays’ legislation to harmonising national green levies, the UK has oftenstood alone among the northern Europeans in opposing new measures.

If that is about to change, the new energy tax proposal from TaxationCommissioner Mario Monti begins to have a chance, and those governmentswhich do not like it will no longer be able to hide behind Britishobstructionism.

The latest proposal takes a diplomatic approach to win over the opposition- which includes Ireland, Spain, Greece and Portugal – while keepingDenmark, Sweden, Belgium, Austria, Germany and the Netherlands happy.

Monti wants to extend existing minimum rates of excise duty on mineral oilsto other energy products, uprating them and applying them to coal, naturalgas and electricity.

Electricity consumption would be taxed, but governments would be able togive rebates for the use of ‘environmentally preferable’ fuels.

A lot less movement can be expected when it comes to establishing a pan-EUsystem to ensure environmental responsibility, a proposal from EnvironmentCommissioner Ritt Bjerregaard long opposed not only by the UK but also byFrance and Germany.

Business, supported by these three governments, is adamantly against herattempts to get the ‘polluter pays’ principle on to the EU law books.

Her only hope is a limited approach which would attempt to fill the gaps innational legislation and concentrate on site clear-up or ecological damagerather than liability for personal injury or damage to property.

Until more European measures are adopted, or strict rules set, governmentswill continue to adopt their own green levies in a haphazard way whichthreatens the single market.

When it came forward with a report on environmental taxes in January, theEuropean Commission disappointed everyone with its vagueness.

It proposed allowing member states to choose the fiscal tools to achieveenvironmental targets while restricting the free movement of goods acrossEU frontiers as little as possible. But it failed to give a clear-cutcommitment to the principle that there should be no discrimination againsttransportation across internal borders.